The Island Hotels group has reported a gross operating profit of €5,504,098 (2010 - €5,566,562) for the year ending October 31, 2011 and a loss after tax of €242,362 (2010 - €649,693 which included a loss from discontinued operations of € 451,693).
The group said its turnover reached €30,254,333 (2010 - €28,761,730). After taking into consideration depreciation, investment income and finance costs, the group reported a loss before tax of €597,717 (2010 - €617,787).
The group said business patterns and operating results for the year ended 31 October 2011 were very similar to those of the previous year. The performance of the tourist market generally exceeded expectations but the vacation ownership market remained difficult. There were, once again, considerable vacation
ownership sales on a trade-in basis, where only the incremental value of an upgraded sale was taken to profit.
The acquisition of 50% of Buttigieg Holdings Limited extended considerably the group's food production capacity for event catering. The acquisition was made in the latter part of the financial year and its full benefits will be felt in the group's results in future years. This acquisition was financed by the issue of 1,070,960 Ordinary shares of €1 each.
As a result of increased activity, staff costs, food and beverage costs and other operating costs increased considerably over the previous year, notwithstanding some significant operational efficiency improvements. Depreciation and finance costs increased marginally.
"The business conditions that the group faces remain difficult and do not show immediate signs of improving. The worsening economic conditions in all of the group's major markets, will continue to present challenges. These challenges will again be faced by a strong focus on vacation ownership sales, by a continued drive to improve operational efficiency and by continuing to seek new business
opportunities," the group said.
The plans to develop Hal Ferħ into a high quality resort are at the stage of obtaining the various permits and concurrently the group is actively seeking fresh external equity to finance this development.
The group will continue to focus on event catering activities to leverage on its clear market leadership position.
At the end of the reporting period, the group's total shareholders' funds amounted to €36,179,350 (2010 - €35,215,865).
The directors have not proposed the payment of a dividend.